Following the announcement that local authorities must notify Scottish ministers of new data centre developments over 50 MW, the Scottish Government has committed to publishing a draft national strategy and spatial guidance, expected by the end of the year.
The strategy comes five years after the publication of the Green Datacentres and Digital Connectivity Vision and Action Plan, which was designed to position Scotland as a leading destination for green data centres. However, since then, the policy landscape has changed dramatically.
Overview
In a Scottish parliamentary debate held in September, parties supported amendments to demand a draft national strategy on data centres, and a pause in decisions on consent until guidance is published.
Following this debate, the Climate Action Committee and the Economy, Tourism and Energy Committee announced plans for an inquiry into data centre development, with the former calling for data and evidence on the environmental impacts, and the latter seeking to understand the economic and energy implications.
The forthcoming guidance will be important to watch closely. Key questions remain around grid capacity, environmental standards, and community benefit, with planning still a contentious issue in the development of national guidance.
Scottish Government
The Scottish Government supports a balanced approach, between investment, environmental standards, and community benefit. It hopes to achieve this through environmental oversight and ministerial notification of new developments. Ministers have opposed a moratorium, arguing it would discourage investment.
Scottish Labour
Scottish Labour wants investment shaped by national industrial planning. It has proposed community benefit schemes, as well as changes to business rates or other taxes, to ensure host communities share in the economic benefits of data centres. MSP Paul Sweeney has suggested placing data centres near existing power stations to make use of established infrastructure.
Scottish Conservatives
The Scottish Conservatives recognise the investment and skilled jobs data centres could bring but have concerns regarding their impact on landscapes. They welcome mandatory EIAs as an interim safeguard, but have criticised delays in providing guidance to councils, communities, and developers.
Scottish Greens
The Scottish Greens have consistently called for a moratorium on data centres over 50 MW until national guidance is published. The party’s concerns relate to the cumulative impact of data centres on infrastructure and the belief that renewables powering them could be better used elsewhere. They have also called for communities to be involved in the planning process.
Scottish Liberal Democrats
The Scottish Liberal Democrats have recognised the potential economic benefit and strategic importance of hosting data centres. However, they have called for them to be compatible with grid capacity, suggesting an independent energy-demand assessment. They have also suggested minimum environmental standards and community benefits, including jobs, skills programmes, and apprenticeships.
Reform UK
Reform UK is supportive of the investment that data centres could bring, however, the party has called for limits on location. MSP Graham Simpson has opposed large developments on the green belt and agricultural land.
What is at stake?
Restricting development could result in losing investment; approving it could increase pressure on already constrained infrastructure and complicate environmental commitments. The guidance must address these competing considerations, including defining what a “green” data centre is and how local consent should influence these decisions.
For a minority SNP Government, parliamentary support is another consideration, although the Greens have not explicitly stated this issue as a red line for their support.
The question facing politicians is how Scotland can secure the economic benefits of data centres while maintaining environmental standards and delivering tangible benefits for host communities. The answer they come up with could shape both the country’s economic and environmental future.
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